The steel industry is undergoing a significant transformation toward sustainability, circular economy, and reduced carbon emissions. Steel production is responsible for 7% to 9% of global carbon emissions. To meet ambitious climate goals, the industry must decarbonize its processes. Major steel-producing countries, including China, Japan, the EU, and the US, have set ambitious targets for net-zero economies. Achieving this requires a shift to radically different zero-emissions steelmaking. The traditional coal-based blast furnace and basic oxygen furnace process route is discarded. Green hydrogen as a reducing agent, the use of renewable energy, and electric arc furnaces are the key solutions in zero-emissions steelmaking. Electric arc furnaces play a part in circular economy, too, as scrap metal is transformed into new steel products. Despite its benefits, the electric arc furnace process route is energy-intensive. This is where the Luxmet steps in.
Climate and energy impact
Luxmet develops and delivers solutions that help customers excel in green transition and improve their current high-temperature industrial operations. The main solution, ArcSpec, can help achieve improved energy efficiency in electric arc furnaces. Energy efficiency can increase by 3-6% which reduces the amount of electricity required. Thus, Scope 2 emissions per produced tonne of steel are reduced as a result. In selected market areas, the emission reduction potential is approximately 8.3 million tonnes of CO2 emissions in total. This is equivalent to the yearly carbon footprint of 1.3 million Finns or yearly CO2 emissions of 4.6 million passenger cars. The market value of the yearly emissions is 540 million Euro when using the EU carbon permit price as a reference[1].
Figure 1. Emission reduction potential across selected market areas. (* source data incomplete).
Material and resource impact
In addition to improvements in energy efficiency, ArcSpec can reduce the wear of refractory materials and the consumption of electrodes in electric arc furnaces. Refractory wear can be reduced by up to 45%. Electrode consumption can be reduced by four percent. These together can result in saving costs of one euro per produced steel tonne.
In both the traditional basic oxygen furnace and electric arc furnace processes, a ladle furnace is used to refine molten steel into specialty grades. ArcSpec for Ladle Furnace provides real-time temperature monitoring and slag analysis. These features result in improved steel quality control, more precise use of additive materials, and improved efficiency. Consequently, the use of rare and expensive materials can be optimized.
Future benefits
Steelmaking is transitioning from integrated routes to electric arc furnaces. This will result in investments and vastly increased capacity for the EAF route, both to scrap EAF and EAF-DRI. Luxmet is an active driver in the transition and has many solutions and benefits to offer. Luxmet helps steel mills in transition to understand the new EAF process with real-time measurement, analysis, and control solutions. Measurements shed light on what is happening inside the furnace. Analysis helps to improve efficiency and productivity. It is also possible to automate control signals to process automation to get the full benefits. Overall, Luxmet solutions and the transition to the EAF process route together will improve productivity, resource efficiency, and energy efficiency in the steel industry.
[1] 65 Euro per tonne as of September 2024